HIGH RENTAL YIELDS V. LOW INTEREST RATES

 Record low interest rates hurt savers but not landlords!

Todays announcement compounds more misery on savers as the Bank of England Base Rate has been cut to a new record low of 0.5%. This means banks can pay you even less interest on your money.

The rates have been cut to try and increase the attractiveness of borrowing and thus stimulate the economy. One sector that has been hit hardest is property. The result has been a fall in prices and a chronic shortage of mortgages for first time buyers.

This is not all bad news!

The fundamental truth is that we all need somewhere to live so although we have seen less people able to buy we have seen a surge in demand for rentals. When demand is high prices go up, and although we have dropped from the record levels we saw in 2008, the rental yields being achieved right now are fantastic. We have secured for our clients in recent weeks below market value properties with yields ranging from 7% - 10% and in one case 16.9%.

Its a simple choice for investors

You can leave your money in the bank earning nearly no interest (and when you consider inflation actually losing money) or invest in a below market value property with a great yield.

No one knows when the market may change but benefiting from a great yield in the meantime is, in our opinion, a far better use of your money than letting a bank keep it dry for you!

If you are interested in below market value properties call us on 01342 840000.

Kind regards

Choices Acquisitions & Investments